Treasury raises red flag over Living Goods agreement with Isiolo County

Treasury raises red flag over Living Goods agreement with Isiolo County

In a letter sent to Isiolo County Governor the CS Treasury has raised serious concerns over the agreement between Isiolo County and Living Goods. The CS has noted a number of anomalies from the Public Finance Management (Isiolo County Community Health Services Fund) regulations which was hurriedly passed by the County Assembly despite the numerous mistakes Sen. Fatuma Dullo had raised. In the letter the CS has raised concerns over the lack of clarity on the type of donor funding, that is, if it’s a grant or a loan. The CS has also insisted that allowing an unknown entity to open and operate an account which is the responsibility of the County Treasury is a serious breach of the law.

The lack of a clear explanation on the purpose for which the fund is created has also been raised by the treasury.

“The regulations have not stated how the Fund will strengthen the provision of community health services in Isiolo which seems to be the main objective of creating the Fund. The regulations should contain certain aspects to guide the committee in determining how the Fund will be utilized, ” reads the letter. The letter has also questioned the lack of clarity on whether the agreement is giving a grant or a loan or getting into a Public Private Partnership with Isiolo County Government.

Senator Dullo has been firm on her stand that the Agreement was a huge breach of the law. The Senator still has a pending petition at Senate whose report is expected to be released once the house resumes next week. The legality of the whole process has been questioned and the letter has clearly outlined the holes that exists which needs to be filled if the agreement is to stand.

In conclusion the report reads;

“The National Treasury recommends that the above observations be clarified before the agreement is implemented. Strict adherence to provisions of Public Finance Management Act, 2012 and Public Procurement and Disposal of Assets Act, 2015 is a mandatory requirement in development of Regulations and the agreement between Isiolo County and Living Goods.”

Find the letter below;